The world is changing daily and successful firms recognize that they have to adapt to this change. In the tourism and aviation industry the invention of the “Internet”, the introduction of low cost business models, the rise of strategic alliances, and the renewed customer focus have dramatically altered the way of doing business.
Evolve recognized these changes and developed a strategy to prepare your company for the future. There is a renewed interest in customer loyalty and the question often raised is if a customer loyalty program would create value. Nowadays a loyalty program is mainly employed as a marketing tool to create and enhance customer loyalty. The full benefits of true customer loyalty can be unlocked by adopting a loyalty-based approach throughout the entire firm.
The findings of a study conducted by Evolve in 2014 confirm that a loyalty program has a positive effect on customer value variables like social media referral behaviour, share of wallet and retention. Depending on the cost of operating a customer loyalty program there is value creating potential.
Evolve can help you to unlock the true potential and value of customer loyalty in such a way that this loyalty is sustainable. We will start by drafting a loyalty management strategy where we place the creation of a consistent superior customer experience at the centre of the business strategy. By encouraging repeat purchasing among loyal, profitable customers the company can initiate numerous economic advantages. If these benefits are subsequently invested in the loyalty-based system the future customer value can be enhanced.
We can assist companies in the shift from a transaction-orientated approach to a relationship-orientated approach. The strategic focus will be on the customer and not on products and the marketing efforts will concentrate on customers and not only on product lines.
Different customers have different needs and may require a different approach. Furthermore research has shown that different groups of customers are susceptible to different kinds of loyalty initiatives. The Net Promoter Score (NPS) system is a very useful and widely used metric to indicate loyalty. Evolve will take the next step by segmenting your customer beyond the NPS levels of promoter, passive and detractor. Your company will be able to focus their loyalty initiatives on those customers that create the biggest future value.
By determining the customer engagement value (CEV) we can measure the value effects of loyalty and subsequently integrate loyalty management in the business strategy, we help you to determine how much a customer is financially “worth”.
Respect is earned | Honesty is appreciated | Thrust is gained | Loyalty is returned
It reminds us that loyalty can not be bought. It should be deserved by investing in long-term company- employee-customer relations. Reach out to us and tell us about your initiatives. Let us discuss how we can start unlocking true customer and stakeholder loyalty together.